AMN - CONFERENCE: Money still available for quality assets

Quality over quantity is key to raising capital in today’s tight market according to a group of top investors speaking at the International Mining and Resources Conference (IMARC) in Melbourne this week.

The group comprised Anglo Pacific Group CEO and executive director Julian Treger, Orion Resources Group portfolio manager Peter Rozenauers, EMR Capital managing director and CEP Jason Chang and Arete Capital Partners CEO Campbell Olsen said that the mining industry had seen a revolution on how capital made its way into the market over the last decade.

“We are seeing the emergence of private capital from the US pension money, and endowment money and this capital is looking where to go to next and mining is the big focus,” Chang said.

“Even in the past five years, we are seeing more capital from those areas. Our view is that good assets typically get funded.”

Olsen said that while there was money still out there, the focus was on the quality end. “There are a lot of companies that have low-quality assets that don’t stack up that are still being promoted. And the investment industry is waking up to that.

“We concentrate on the high-end, with high-purity,” he said.

The panel at the Rising Capital session on the opening day of Australia’s largest mining conference also explored ways that mid-tiers can attract much-needed funding.

According to Treger, not all commodities can be funded, with coal being out of favour.

“You have to choose your spots. If you are going to try to raise money for gold, it is easier in the public market. In private equity, we look at the pricing outlook. You need to think about your commodity and where it is in the pricing cycle,” he said.

While some commodities may be unattractive at the moment, investors were rushing to open their wallets to spend on battery minerals; however, the demand side of the equation was unknown, according to Rozenauers.

Seconding that sentiment, Chang said that copper was at the top of every investor’s wish list.

“Everyone is chasing good cooper and we are seeing some exciting opportunities out there.

“There is a lot of new market money going into new frontiers including for copper, gold, potash and hard coking coal however there are not too many large discoveries,” said Chang.

IMARC is where global mining leaders connect with technology, finance and the future. Now in its 6th year, it is Australia’s largest mining event, bringing together over 7,000 decision makers, mining leaders, policymakers, investors, commodity buyers, technical experts, innovators and educators from over 100 countries for four days of learning, deal-making and unparalleled networking.

IMARC is developed in collaboration with its founding partners the Victorian State Government of Australia, Austmine, AusIMM and Mines and Money and is on now until 31 October at the Melbourne Convention & Exhibition Centre.

https://imarcmelbourne.com